What Happens When a Company Makes a Loss - Do I Have to Pay Tax?

Good day, my company in Norway had more costs than income this year. Even though it made a loss, do I still have to pay tax?

The short answer is: if a company has a tax loss, it generally does not pay income tax, because income tax is calculated on a positive tax base, not on turnover alone. In this case there is no profit, so there is nothing to tax.

For a broader picture, in this article we explain the difference between an accounting loss and a tax loss, how losses work in ENK and AS, what to do with advance tax payments, and which obligations remain even when the final income tax is 0 NOK.

Company loss and income tax - the key rule

In Norway, income tax is calculated on net income, meaning income minus tax-deductible costs. The key concept is alminnelig inntekt (ordinary taxable net income). In 2026, the basic tax rate on alminnelig inntekt is 22% for individuals and companies. For people in the Troms/Finnmark area, the rate is 18.5%.

If the tax return shows a loss, the income tax base from the business is 0 NOK. In practice, that means no profit tax arises from that activity.

Simple example:

Important: an accounting loss and a tax loss are not always the same amount. The accounting result must be adjusted to a tax result, for example by costs that are not deductible, depreciation differences, or other adjustments in næringsspesifikasjon (the business specification in the tax return).

If you want to organize the topic of costs, see also our article What can I put through as business expenses in Norway?

ENK and AS - how losses work in different business forms

The effect of a loss depends on whether you run an enkeltpersonforetak (ENK, sole proprietorship) or an aksjeselskap (AS, Norwegian limited company). This matters because ENK is taxed together with the owner, while AS is a separate taxpayer.

ENK - a loss can reduce your private tax

In ENK, the business result is included in your private tax return. If the business makes a loss, that loss can reduce your alminnelig inntekt from other sources, for example salary from employment. If you do not have enough income to use the entire loss in that year, the unused part is carried forward to later years.

Example:

An ENK loss can therefore reduce the owner's final tax. However, it does not automatically mean a tax refund. A refund only arises if you previously paid or had more tax withheld than the final settlement shows.

With a loss in ENK, personinntekt (personal income from business) is usually not generated either. Personinntekt is the basis for, among other things, trygdeavgift (social security contribution) and trinnskatt (progressive tax). If you want to understand this part better, we cover it separately in the article What is trygdeavgift and how is it divided into social security and healthcare contributions in Norway?

AS - the loss stays in the company

An AS is a separate taxpayer. If the company has a tax loss, it does not pay income tax on profit for that year, but the loss stays in the company and can reduce future profits.

Example of carrying losses forward in an AS:

In year 3, the company pays tax on 150 000 NOK, which at a rate of 22% means tax of 33 000 NOK.

An AS loss does not allow the owner to automatically reduce private tax on salary. If you pay yourself a salary from an AS, that salary is still your private employment income, even if the company ends the year with a loss.

Advance tax payments with a loss - forskuddsskatt is not the final tax

You need to clearly separate two things:

• forskuddsskatt (advance tax paid during the year or after the income year in the case of an AS),
• the final tax from the annual tax assessment, resulting from the skattemelding and skatteoppgjør.

A company may pay advance tax during the year and then, after the annual tax return is completed, it may turn out that the final income tax is 0 NOK. In that case, any overpayment is settled in the final tax assessment.

ENK - change your skattekort if you expect a loss

In ENK, forskuddsskatt depends on your overall financial situation: business, work, benefits, assets, and other income. If you have forskuddsskatt assessed but you know the business will make a loss, you need to change your tax card and enter the expected underskudd, meaning loss.

In 2026, the standard instalment dates for advance tax payments for ENK are:

Changes to the skattekort can be made until 15 December of the year in question, although in practice it only makes sense until October in most cases.

AS - you can apply to reduce or remove forskuddsskatt

An AS pays advance tax in two equal instalments: 15 February and 15 April of the year after the income year. If the expected tax is less than 2 000 NOK, advance tax is not assessed.

If the AS expects a loss or no tax, you can apply to reduce or cancel forskuddsskatt. The application must be submitted in good time before the deadline for the last instalment.

A loss does not remove other company obligations

Income tax on profit may be 0 NOK, but the company still has to handle the remaining obligations. This is a common mistake: the owner sees a loss and assumes that nothing else needs to be reported or paid. That is not how it works.

If the company is registered for VAT, it submits a mva-melding (VAT return). VAT does not depend on the company's profit. If utgående mva (output VAT) is higher than inngående mva (input VAT), the company pays the difference. If inngående mva is higher, the company shows an amount to be refunded.

The VAT registration threshold is generally 50 000 NOK excluding VAT in sales subject to VAT within 12 months. Sales subject to VAT, including sales at a 0% rate, after crossing this threshold create an obligation to register in the MVA register. We discuss this threshold in more detail in the article VAT registration - when is it required, and what does it give you?

If the company employs staff, a loss does not remove the employer's obligations. A-melding (monthly report on wages and employment) is submitted every month by the 5th day of the month. Forskuddstrekk (withholding tax deducted from the employee's salary) is paid no later than the first working day after the salary payment from 2026. Arbeidsgiveravgift (employer contribution) is paid on taxable wages and benefits, regardless of whether the company makes a profit.

If you are planning to hire, also see How much does an employee really cost in Norway?

When a loss does not help for tax purposes

A loss reduces tax only if it comes from genuine business activity and from costs that can be tax-deducted as fradrag (tax deduction). The fact that there is less money in the business bank account than before is not enough.

The most common situations where a loss needs special review:

In an AS, there is also the duty to monitor equity. Under aksjeloven, the company must have forsvarlig egenkapital (adequate equity) and liquidity suited to the risk and scale of the business. If the equity is lower than justified or has fallen below half of the share capital, the board must address the situation without delay, convene the general meeting, and propose measures.

This is especially important when there are several years of losses in a row. For tax purposes, the loss can be carried forward, but legally the board of an AS must react when the company loses financial stability.

FAQ - frequently asked questions

Summary

• A tax loss generally means no income tax on profit, because tax is calculated on a positive tax base.
• In ENK, a loss can reduce the owner's private tax, and any unused part is carried forward to later years.
• In AS, the loss stays in the company and can reduce its future profits, but it does not automatically pass to the owner's private tax return.
• A loss does not remove other obligations, such as accounting, skattemelding, VAT, a-melding, forskuddstrekk, and arbeidsgiveravgift.

If you need help with handling a loss in your company, call us at +47 21 38 38 21. We help organize tax and accounting matters.

Article author: Marcin - marcin@efirma.no